NORTHERN MICHIGAN | General Developments

[Velvet_Highground]

I had never heard of this theory till now and it fits the mold of big box stores modus operandi so well I can can only say I’m impressed how long it’s taken for me to find out about it. My cynical side brings up mental images of Canadian small cities in the region that house & social municipal services in shopping malls. Except with a dark twist let this run unchecked for a couple generations & the idea of cradle to grave “service's” run out of big box stores in small economically left behind communities becomes realistic. A company that is the largest employer in America behind the pentagon & prisons can run a small town how it wants like George Hurst does Deadwood (HBO) style.

This practice is certainly detrimental to communities who often spend money on infrastructure to seal the deal to land the development. Losing millions in property tax revenue certainly hurts a revitalizing mid-sized city like K-Zoo but the effects on small cities can be devastating for local services like schools, fire departments & libraries. Escanaba recently went through litigation with Menards who was able to successfully sue the city arguing that they store was 60% over valued, while the state court of appeals returned money to the city it still lost $2 million. The practice in this case used a company tax assessor to argue that the building’s true value was in line with older structures with deed restrictions.

For a small rural city such as Escanaba already struggling for decades to foster a new model of growth while keeping residents from leaving having to slash millions in municipal services is beyond a gut punch it’s a rusty blade into the belly. Houghton has become somewhat of a model city for the Upper Peninsula it’s growing attracting tourism despite being in BFE & has a small but vibrant tech industry along with its known reputation as a trendy college town. Houghton is squaring up against Walmart in what may be a landmark case that has ramifications for other cities & businesses across the state & perhaps beyond.

The ‘dark store theory’ has cost Michigan cities millions. It’s facing new challenges.

Apr. 09, 2023
Mlive
By Mathew Miller


In the spring of 2004, a vice president from Wal-Mart Real Estate Trust signed a development agreement with Houghton city officials that laid out conditions for the retail giant to expand an existing store on the southeast end of the city into a Walmart Supercenter.

The city would sell Walmart half an acre; give the company $300,000 to offset the costs of wetland mitigation work, including the relocation of Huron Creek; and agree to provide long-term environmental monitoring of the surrounding wetlands and drain systems.

Walmart, for its part, agreed to a $1.95 million increase in the taxable value of the property.

Except that, 13 years later, the retailer decided it was paying too much.

Walmart asked the Michigan Tax Tribunal in 2018 to reduce the store’s taxable value to less than $4 million, a $700,000 decrease that would put the valuation lower than it had been in 2005 when the Walmart Supercenter opened. In 2021, with the case still pending, it filed another petition, asking for a taxable value of just over $3 million.

It offered up a now familiar and tremendously successful argument from big box retailers: that the store was best assessed not as the site of a successful business but as what it would be worth empty.

….

But the Houghton case has a difference from other cases, the signed development agreement that specified a property tax increase, and the case could be a test of the limits of the dark store theory.

The city is not only fighting the reassessment but has filed a lawsuit against Walmart Real Estate Business Trust in federal court, alleging breach of contract.

“You see this time and time again throughout the state, where these communities with these big box stores, they welcome them into the community, they look to them for jobs and shopping experiences and economic development and they build roads, and they put water lines and sewer lines, and they do all these things,” said Houghton City Manager Eric Waara. “And then another arm of that company comes in and says, ‘Well, you know, we’re going to exploit this loophole in Michigan tax law.’”

….

Houghton city officials have made a point of telling the public what they do for Walmart. Among other things, the store accounts for nearly 10 percent of the city’s police calls.

They’ve also made a point of talking about what the city will lose if the reassessment the retailer is asking for goes through.

“If the Michigan Tax Tribunal orders their lowered valuation, we’ve got over a million dollars to pay back retroactively to them, because they’re suing us back to 2018…” Waara said. “The city itself would owe them over $300,000, the school system nearly a half-a-million dollars, our local veterans organization, our senior citizen medical care facility, our public library, our intermediate school district, all have to pay Walmart back.”

Other states have addressed the issue, he said. Maine and New York have both passed laws in recent years laying out alternate means of assessing big commercial properties.

https://www.mlive.com/news/2023/04/t...outputType=amp

[DetroitMan]

102 new lakefront hotel rooms coming to this Northern Michigan city

The Manistee waterfront is getting a facelift with the help of $2 million loan from the state.

The Lake Michigan shoreline will have 102 new rooms available for guests after a small motel is demolished and a new five-story Hilton is built at 101 S. Lakeshore Drive.

Although the project is roughly 70% complete, rising construction costs and environmental remediation pushed developers to ask the Michigan Strategic Fund board for public support.The board voted unanimously to aid the project with the $2 million loan and $808,000 state tax capture for the environmental clean up and public infrastructure updates to water, sewer, roads and sidewalks near the property.

With the financial boost, developers estimate a summer 2023 opening, according to the MSF packet.

Manistee officials presenting to the board on Tuesday, April 25, said the project has already spurred economic interest in the beach town.

https://www.mlive.com/public-interes...igan-city.html

[deja vu]

^ I was up north for a few days, earlier this week, and I was able to stop in Manistee on the way back home to check out this hotel, plus a few other things from the road. The new hotel is quite a change from the modest lakefront motel that once stood there. And to be more accurate, it is a Hampton Inn (owned by Hilton). These photos are from Wednesday, 6/8 -







The adjacent Lakeshore Drive also appears to have gotten some new work -






Here is the gateway to downtown along River Street. I was disappointed (though not suprised) to see that nothing else with the downtown gateway project (aka Spirit of the Woods) has progressed (you can spot the construction fencing on the right) -


Drive-by of the WSCC Downtown Education Center -


Drive-by of Joslin Cove Townhomes expansion. These are north of the channel / downtown, along US 31 -

[deja vu]

Traverse City -

I was able to to check out a few more things in Traverse City earlier this week. There was a certain pregnant energy in the air; the quiet before the summer tourist season pops. Lots of projects underway or wrapping up. This is a fairly long update, and I saw maybe only half of the projects happening right now. Here's some homegrown music to help get you through it -

• Video Link

State Savings Bank, on S Garfield Ave. -


This second image, as well as the rendering below it, is from the bank's website -



Source: State Savings Bank

New housing project, also on S. Garfield Ave. I didn't catch the name on the sign, but I think it is this Woda Cooper project -


The "massive" GLC / Northern Michigan Pines project -










These new condos / apartments (/ private residence?) at 401 E Front St. are almost done -








Next door to it, Honor Bank, which has been open for a little while -


The Freshwater Flats project seems like it is taking forever. I don't know what is going on with it. Some of the units are occupied, others are unfinished and it looks like like there is nothing happening at all with them -










These units have absolutely zero yard space and this has to be about the ugliest / laziest / cheapest design for a gap between two buildings -












What do you think of this house just west of this, at 124 N Oak St? Google maps shows it's been around since at least 2019, but I just stumbled upon it. A quick search shows it is owned by the president of a land development / civil engineering firm -






Looks like they're doing pretty well for themselves -




539 Bay St (completed in late 2020, but my first time really seeing it in person), looking good at dusk -








Windward (at 613 Randolph St.) is not terribly new either (completed in 2019) but I like the way it is framed by the two older buildings on either side -






Acqua is very far along -










The newest Traverse City Area Public Schools building celebrated a ribbon cutting this past Tuesday (TCAPS Montessori) -
















The last one for this tour, Cypress (completed last summer) at the corner of Cypress and N Division Streets -

[deja vu]

Interlochen -

I also stopped by Interlochen last week to check out some of the newer things -

The new dance center, completed February 2021 (couldn't get inside) -
















Right next door to this is the newest residence building, the Dow House, completed in August 2021 -










I was able to get in side the new Music Building, which opened in May 2019 -


















There are also some other smaller residence buildings being renovated -

[subterranean]

Very tasteful stuff, thanks for the updates.

[DetroitSky]

Anthony Craig Plots Georgina's Comeback, Luxury Condo Development On West Front Street

A new mixed-use development – and the return of the Georgina’s restaurant brand – is bound for a piece of prime downtown real estate at 531 West Front Street. The Ticker has the scoop on this new project and on several other high-profile pieces of property news in Traverse City.

531 West Front Street is currently home to a single-story structure that previously housed several restaurant concepts spearheaded by chef and restauranteur Anthony Craig. Craig says his plan is to redevelop that property into a four-story mixed-use development, with two commercial spaces on the ground floor and 12 residential condos on the upper levels. Craig is working with realtor Sam Flamont and Flamont’s Mitten Real Estate Group to pre-sell the residential units. In the meantime, he plans to get back into the restaurant business this summer by opening an establishment inside the existing space. Once construction begins, he’ll temporarily close the restaurant, with plans to reopen again once the project is complete.

The residential part of the development is called Docena, and is touted in listings as “the ultimate in Downtown Luxury.” According to Flamont, the condo complex will offer 12 units ranging in size from 1,300 to 1,600 square feet, all with three-bedroom, two-bathroom floorplans. The property will also include a rooftop deck that will be accessible to all residents. The units are being sold as long-term residential housing, and Flamont notes that Airbnbs or other short-term rentals will be prohibited in the building.

[deja vu]

^ Thanks for sharing that article. I'm always wary of anything that is advertised as "the ultimate in Downtown Luxury". But I like seeing the downtown density extend west along Front Street.

Also, what does that statement in the rendering even mean?

"All structures and improvements shown herein are "need not build"

Is that just legal speak / disclaimer for, "don't hold us to any of this, you guys, the final product could look vastly different?"

More renderings found at the real estate listing.

[DetroitMan]

Northwest Michigan needs 31K housing units by 2027 to meet demand, study finds

The northwestern Lower Peninsula will need 31,268 housing units by 2027 to keep up with demand, according to a recent needs assessment by a housing advocacy nonprofit. Housing North — a nonprofit housing organization that serves Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee and Wexford counties — worked with Bowen National Research over the past nine months to conduct the Northwest Michigan Housing Needs Assessment.

The study seeks to arm communities with information to overcome their housing challenges and follows similar assessments in West Michigan. Housing North Executive Director Yarrow Brown said the report will also provide important data to the Statewide Regional Housing Plan, a five-year initiative that Gov. Gretchen Whitmer announced last year to address the state’s housing shortage.

The Michigan State Housing Development Authority (MSHDA) is partnering with local housing organizations in 15 regions across Michigan to accomplish Whitmer’s goals, which include creating or rehabilitating 75,000 housing units that range in affordability and housing type. Reducing equity gaps in housing, reducing homelessness and increasing home energy efficiency are also among the statewide housing goals.

The state selected Housing North to lead the housing effort in the northwestern Lower Peninsula.

“This study was already underway, but it will help inform the (Statewide Regional Housing Plan),” Brown said. “The timing is kind of impeccable — we’re really excited that we have it to help inform the next steps of our regional housing plan.”

The Northwest Michigan Housing Needs Assessment shows a need for 8,813 rental units in Housing North’s 10-county region over the next five years, and a shortage of about 22,455 for-sale homes in the same timeframe.

The highest demand for for-sale homes in the region comes from households earning 81%-120% of the area median income. Around 5,977 housing units are needed for households earning 120% or more than the area median income (AMI), according to the study.

“We were a little surprised that there are that many for-sale units that are needed,” Brown said. “While it was a bit of a surprise, most people would like to be in a homeownership situation.”

The region’s for-sale housing needs represent more of the “missing middle” population, while the bulk of the area’s rental needs are from people making 50% or less of the area median income, Brown said.

https://www.crainsgrandrapids.com/ne...d-study-finds/

[deja vu]

Mackinac Island -

Arch Rock Plaza will be closed for a year, for construction of the new Milliken Nature Center. Groundbreaking was 9/1/23 -

Mackinac Island's Arch Rock Plaza closing until 2024
Jasmin Barmore | Detroit Free Press
September 2, 2023

Source: Detroit Free Press

[deja vu]

Menominee -

$26.5M hotel development project at former Kmart building in Menominee receives brownfield funding
By TV6 News Team
September 28, 2023

MENOMINEE, Mich. (WLUC) - A $23.5 million dollar hotel project is in development at the former Kmart building in Menominee. The Veridea Group is planning to demolish the old building and construct a new four-story, 95-room hotel. The location was home to the last Kmart in the Upper Peninsula which closed in 2019. The Michigan Strategic Fund on Tuesday approved $4.1 million in brownfield tax incentives for the development of the new hotel. According to the project memo, future phases of development include a potential second hotel, residential development, and retail space. The project also outlines plans to create a walking trail from the hotel to the waterfront and downtown Menominee.

No renderings or hotel brand yet that I can find, but I'd assume it's something pretty run-of-the-mill. Still, much better than a vacant Kmart.

Here's the site (right next to the sewage disposal plant).

[Rizzo]

Yeah that’s weird. I’ve stayed in Menominee before. Most hotels are north of town on the water.

[deja vu]

Marquette -

Marquette is getting a new cultural center, in the vacant Chamber of Commerce building -

Creating a cultural hub in Marquette
Rosemary Parker | SecondWave Media / Upword
October 18, 2023

Source: SecondWave Media / Upword

Escanaba -

Downtown Escanaba is getting a facelift -

'Longest small town downtown’ gets a facelift
One of many development projects in Escanaba
Rosemary Parker | SecondWave Media / Upword
October 18, 2023

Negaunee -

A new Michigan State Police Post opened in Negaunnee -

New MSP command center opens in Negaunee
Brice Burge | SecondWave Media / Upword
October 18, 2023

[deja vu]

Mackinac Island -

Milliken Nature Center, from a few weeks ago. They are making quick progress, and I'm guessing nearly all of those beautiful fall leaves have since dropped -






Source: LinkedIn | Spence Brothers

[Velvet_Highground]

The purist resort bills itself as expert only doesn’t manufacture snow and leans hard into its rowdy underdog image to lure a dedicated fan base up to the Northen Kewenaw. Though for all no frills posturing the Nordic Spa has been good to their bottom line with a planned a 3 million dollar expansion next year.

Michigan’s Mount Bohemia Is USA Today’s #1 Ski Resort In North America








The competition began with a panel of ski experts selecting 20 resorts across the United States and Canada to be considered by the readers. The 20 were selected based on snowfall, terrain variation, lift access, and more. Mount Bohemia has the deepest snow (273″ average yearly snowfall) and the longest runs with the highest vertical (900 feet) of any resort in the midwest, and it features 625 acres of skiable terrain over eight sections of varying terrain and difficulty. In short, the midwest mountain certainly qualifies to be among the top twenty. From there, USA Today opened the competition to the public and Mount Bohemia was the crowd favorite.

https://unofficialnetworks.com/2023/...ki-resort/amp/

[joemits]

Any free sites that allow photo sharing. A couple projects going up in Marquette right now( Best Western hotel on South McClellan and Ore dock expansion on Front st) and a few more to start this spring.(Fairfield expansion, First Northen Bank, The Vault, a 47 unit rental community by Renovare in the township, and the 50 unit Black Rock Crossing.) The old Marquette General Hospital campus is nearly dismantled.

[deja vu]

Originally Posted by joemits

Any free sites that allow photo sharing. A couple projects going up in Marquette right now( Best Western hotel on South McClellan and Ore dock expansion on Front st) and a few more to start this spring.(Fairfield expansion, First Northen Bank, The Vault, a 47 unit rental community by Renovare in the township, and the 50 unit Black Rock Crossing.) The old Marquette General Hospital campus is nearly dismantled.

^ Thanks for the updates! I've not been keeping up very well... too busy with life.

For photos, if you have a Microsoft account, you can embed photos that are saved to the cloud on OneDrive. I used to do that. More recently, I've been uploading things to Dropbox, and sharing from there. You can open an account with free storage, up to a certain limit (2 GB). 2 GB will last you a long time, IF you resize images to a reasonable size, before uploading them (I usually aim for 1024x). I post a lot of photos, and I've been using Dropbox for years. It's reliable, and I've found it to be less laggy than things like OneDrive. I'm just now getting to the point where I'll need to either pay up, or find a new, free option. It's a bit tedious, because you have to edit the html link extension, in order to get your photos to properly embed. But once you get used to this extra step, it's really not too bad (instructions).

Like most things with SSP, posting photos is an archaic process that is more complicated than it should be. But we persist. Because this is still the best forum out there, IMHP.

[joemits]

Originally Posted by deja vu

^ Thanks for the updates! I've not been keeping up very well... too busy with life.

I been away for awhile as well. I use to post on here but all the photo sharing sites started charging. The links are probably all broken now. Anyway, thanks for the suggestions. I will look into it next week when I have a couple days to goof. Thanks for all you do on here and I agree, ssp is by far the better forum out there. I use to visit ssc and city data way back in the day.

[DetroitMan]

Condos overlooking Lake Michigan proposed for U.P. destination town

There are plans to develop condos on an empty piece of land along the shoreline of Lake Michigan’s Little Bay de Noc.

Escanaba has a “huge need” for housing, both high-end and affordable, said city manager James McNeil. This development, called Northshore Flats, would be on the pricier side, attracting retirees and young professionals, he said.
Northshore Flats’ special use permit and site plan gained the approval of the Escanaba City Planning Commission last week. The plans still need approval from the city council. Plans call for two buildings with 23 units of one-, two- and three-bedroom condos. The buildings, located on Ludington Avenue, would be connected by an underground parking garage.

A third building is expected to come later, McNeil said. That one would be mixed use with commercial units on the ground floor and apartments or condos above.

https://www.mlive.com/news/2024/02/c...tion-town.html